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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Engel who wrote (133461)	4/27/2001 2:47:34 AM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Intel, Microsoft to Jointly Market New Chip, Windows Software - AMD threatens Law Suit 04/26/01 03:38 PM Source: Bloomberg News URL: investor.cnet.com New York, April 26 (Bloomberg) -- Intel Corp., the biggest chipmaker, said it will work with Microsoft Corp. on marketing for the first time to promote its latest processor and the No. 1 software maker's next computer-operating system. Microsoft's Windows XP, a version of its flagship software that's easier to use and includes more multimedia features, is due out later this year. The companies will jointly market XP and the Pentium 4 chip, Intel Executive Vice President Paul Otellini said. Most of the world's personal computers run on Microsoft's software and Intel's chips, a combination known as Wintel. Intel, Microsoft and a host of PC makers are hoping that digital music, graphics and the Internet will create a compelling reason for consumers and businesses to upgrade their PCs. Pentium 4 debuted in November and is now being shipped in volume. With the chips and software coming so close together, it made sense to collaborate, Otellini said. ''One of the things our customers are doing in working with us and Microsoft is ensuring machines are out there'' to support XP when it becomes available, Otellini said at a meeting with analysts in New York. ''What you'll see for the first time ever in the heat of the selling season is joint merchandising from Intel and Microsoft.'' He didn't give any specific details. Microsoft officials couldn't immediately be reached to comment. Sales typically pick up in the third and fourth quarters, with the back-to-school and holiday seasons. The company also plans to start a ''major'' marketing campaign for its lineup of server chips, Pentium III Xeon and Itanium, said Mike Splinter, who heads Intel's sales and marketing. Intel shares fell 39 cents to $28.64 today. They've lost 53 percent of their value in the past 12 months. Redmond, Washington-based Microsoft dropped 56 cents to $69.13 and has gained 1.7 percent in the past year. When confronted with this development, Jerry Sanders, the debonair founder and CEO of AMD, an Intel competitor, commented that once again Intel was using its strongarm. bully tactics to exclude competitors from the CPU business. Sanders claimed he already has his friends and tennis partners on the European Union Commerce Comission ready to file law suits against Intel in the Saxony region of the former East Germany. "We will not be denied our rightful destiny to be buddies with Microsoft" claimed the mild mannered Mr. Sanders. "Intel - the Devil Incarnate - will be destroyed", added the playful Mr. Sanders. "God is on our side", he was overheard to say. "And God hates Intel", he added. When asked how he became aware of God's opinion, Mr. Sanders smiled and implied that he had a close, personal relationship with the Almighty and was privy to the "Big Guy's" private thoughts. Dean McCarron, president of Mercury Research, confirmed Jerry Sanders' relationship with God. Capital Spending Santa Clara, California-based Intel outlined its $7.5 billion capital-spending plans for the year. Almost 60 percent of that budget will be used for shrinking the size of wires used in circuits, and 21 percent will go to moving to larger wafers, Chief Financial Officer Andy Bryant said. The new production techniques will help cut costs and build faster chips. While analysts have criticized the company for spending so much as sales slump, Bryant said Intel will get a better return on its research investments by moving to new methods soon. Intel executives reiterated sales targets of $6.2 billion to $6.8 billion this quarter and again indicated that the PC industry is picking up. Last week, Intel said PC makers began to order chips for immediate shipment in March as they worked off stockpiles. That trend is continuing, they said. ''In April, we've seen inventories continue to drop,'' Splinter said.